AARP Hearing Center
Key takeaways
- Creating a My Social Security account at ssa.gov give you access to a wealth of information about your past earnings and future benefits.
- Payment amounts are based on your earnings record, so reviewing it for errors can help ensure you get the full benefit you’ve earned.
- Gen Xers reach full retirement age at 67, but waiting until you turn 70 to start Social Security boosts your benefit.
Summary
Jammie Lyell, a Social Security expert with AARP’s office of community, state and national affairs, walks Gen Xers through a Social Security to gather crucial information for their retirement planning. The first step is creating a My Social Security account at ssa.gov, which Xers can use to get estimate of their future benefits and review their lifetime earnings record to make sure it’s accurate.
The checklist also covers how to use Social Security’s online benefit calculator and understanding how claiming age affects monthly payments. Lyell notes that for Generation X, full retirement age is 67, meaning that’s when they can claim the full benefit calculated from their earnings history — but that waiting until 70 nets an even bigger payment. Getting an early start on planning can provide more Social Security options.
The key takeaways and summary were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.
Full transcript
[0:00:00] Hey, all you Gen Xers.
[0:00:02] There’s a number with your name on it sitting at ssa.gov right now.
[0:00:07] It’s what Social Security plans to pay you every month when you retire, and most of you have never looked at it.
[0:00:12] Today, that changes.
[0:00:16] I have you covered with a checklist. So first, let’s start with the basics.
[0:00:22] Head to ssa.gov to create a my Social Security account.
[0:00:26] You’ll need to verify your identity first through login.gov or id.me.
[0:00:32] The whole thing took me about five minutes, and you’ll be surprised at how easy it really is.
[0:00:35] I know I was.
[0:00:38] Next, once you’re all set up, double-check your numbers.
[0:00:42] You can see all your past employment earnings, and yes, even from your very first job flipping burgers.
[0:00:48] And check out me at one of my first jobs.
[0:00:51] I definitely wasn’t thinking about Social Security back then.
[0:00:54] Now, remember, Social Security is an earned benefit that you’ve been paying into since you started working.
[0:01:00] So make sure all your employment is accounted for, and if it’s not, call the Social Security Administration at this number to initiate the correction.
[0:01:11] You’ll need to provide proof like a W-2 or a pay stub so they can make the fix. And don’t sit on it.
[0:01:17] Missing employment records equals missing funds towards your monthly benefit amount.
[0:01:23] Also, be sure to check if your personal information is correct, like your address and any unrecorded name changes.
[0:01:30] OK, up next on the checklist, how much will I get?
[0:01:35] Now, if you’re knee-deep in retirement planning, this is a big one.
[0:01:39] Say you’re 48, and you want to retire at 65.
[0:01:43] Just use the retirement calculator inside your account.
[0:01:46] Enter the age you want to retire, and it projects your monthly benefit based on your earnings history.
[0:01:52] Like what you see?
[0:01:53] Great.
[0:01:54] If not, try a later age, because here’s the part worth remembering:
[0:01:59] Every year you wait between 62 and 70, your monthly check gets bigger,
[0:02:04] and 62 is the earliest you can claim. But that check takes a permanent cut.
[0:02:10] Since Gen X was born after 1960, your full retirement age is 67.
[0:02:15] That’s when you get 100% of your benefit. And if you can hold out until 70, you get
[0:02:22] the maximum amount Social Security pays.
[0:02:25] After that, waiting doesn’t add a dime.
[0:02:29] Now, in spite of what you may have heard, Social Security isn’t going away.
[0:02:34] But if Congress doesn’t act quickly, the Social Security trust fund will run low, and that could affect your monthly benefit amount.
[0:02:42] Right now, it’s projected to pay benefits fully until 2034.
[0:02:47] After that, if lawmakers don’t act, it can only cover about 83% of what you’re owed.
[0:02:53] So no doubt, this does make retirement planning for Gen X extra challenging.
[0:02:58] I know.
[0:02:59] You all just can’t get a break, can you?
[0:03:01] But here’s the bottom line: The earlier you get ahead of this,
[0:03:04] the more options you will have.
[0:03:07] So set up your account, check the numbers, and make a plan.
[0:03:12] For more, head to aarp.org/socialsecurity
